Spend wisely to avoid the debt trap

ACCORDING to media reports, a total of 94,408 Malaysians have been declared bankrupt by the Insolvency Department since 2013. More than 90% of them were declared bankrupt due to failure in settling their loans with financial institutions. Official statistics also show that 70% of bankruptcy cases involved individuals between 35 and 45 years of age.

In 2015, an astounding 350,000 people were at the brink of bankruptcy with an accumulated debt of RM337mil until they were saved by the Credit Counselling and Debt Management Agency. Many had no way out and were contemplating suicide but the agency counselled and helped them to manage their income. It also recommended suitable jobs for those who were unemployed.